“Locally Integrated, Globally Connected for National Competitiveness and Social Welfare”

Development of National Logistics System Framework

Erwin Raza,Erwin Raza,Indonesian National Logistics TeamIndonesian National Logistics Team

““Regional Seminar on Development of Efficient and Effective Logistics Systems, Hangzhou, China, 7-8 May 2013””

Coordinating MinCoordinating Miniistry for Econostry for Econommic Affairic AffairssRepublic of IndonesiaRepublic of Indonesia

A. Introduction § Parties involved in Drafting of National Logistics System

Blueprint§ Implementing Structure

B. Main Features of National Logistics System Blueprint :§ Frame work§ Vision, Mission, Objectives§ Six Key Drivers§ Network System§ Goal and Phasing

C. Challanges: From Action Plans to Implementation

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Presidential Regulation No.26/2012 on the Blueprint of the Development of the National Logistics System, signed and entry into force on 5 March 2012

q Academiciansq Private Sectors

(Associations)q Practitioners/Logistics

ExpertsqMinistries/ Government Agencies’ Representativesq Input from International

Institution/ Experts

Output

Through Colaboration of .....

As a National Guideline and Framework for Developing the Logistics System by relevan ministries, Province and Municipalities governments, and private sectors

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Head of National Logistics Team: Deputy for the Coordinating of Industry and Trade Policy Affairs

Supported by : Expert Group ( Acedimicians and Practitioners), andSecretary General of National Logistics Team

Committee on Acceleration and Expansion of Indonesia’s Economic Development 2011‐2025 (KP3EI)

Executive Chairperson :Coordinating Minister for Economic Affairs (CMEA)

Chairperson for Connectivity Task-Force :Vice Minister of National Development Planning

Working Group for (six) Key Drivers: The Members : consisting of representatives of relevan

ministries/agencies, academicians and practitioners.

MP3EI: Masterplan of the Acceleration and Expansion of Indonesian Economic Development, 2011 - 2025

ConnectivityConnectivityEconomEconomic ic CorridorCorridor

SISLOGNAS SISLOGNAS

Mission of Indonesian Economy 2025“To Actualize Self-Sufficient, Advanced, Just, and Prosperous Indonesia”

Mission of Indonesian Economy 2025“To Actualize Self-Sufficient, Advanced, Just, and Prosperous Indonesia”

To Improve Social Welfare

To Improve Social Welfare

To Improve Competitiveness

To Improve Competitiveness

MP3EIMP3EI

Knowledge, Knowledge, Technology and ArtTechnology and Art

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Missions1.Support the effective and efficient flow of goods to ensure public basic needs are met, and that national product competitiveness is improved on the domestic, regional and global markets. 2.Create national logistics nodes and build their connectivity in rural and urban areas, and between regions, islands and international hub ports through multi-stakeholder collaboration.

Missions

1.Support the effective and efficient flow of goods to ensure public basic needs are met, and that national product competitiveness is improved on the domestic, regional and global markets. 2.Create national logistics nodes and build their connectivity in rural and urban areas, and between regions, islands and international hub ports through multi-stakeholder collaboration.

Objectives: Support the effective and efficient flow of goods

1.Ensure the availability of basic and strategic commodities across Indonesia at affordable prices enabling a fair and prosperous society and strengthen the national sovereignty and integrity;2.Reduce logistics costs through improvement of flow of goods and improved national logistics services capacity thus improve national competitiveness in national and global markets; 3.Prepare for international commitments (e.g., ASEAN logistics integration under PIS, AEC in 2015, and global market integration ).

Objectives: Support the effective and efficient flow of goods

1.Ensure the availability of basic and strategic commodities across Indonesia at affordable prices enabling a fair and prosperous society and strengthen the national sovereignty and integrity;2.Reduce logistics costs through improvement of flow of goods and improved national logistics services capacity thus improve national competitiveness in national and global markets; 3.Prepare for international commitments (e.g., ASEAN logistics integration under PIS, AEC in 2015, and global market integration ).

Vision 2025

Locally Integrated, Globally Connected for National Competitiveness and Social Welfare

Vision 2025

Locally Integrated, Globally Connected for National Competitiveness and Social Welfare

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Human Resources Development

Logistics Infrastructure Development

Players and Logistics Service Providers Enhancement

Key Commodities

Implementation of Information and Communication Technology

Harmonisation of Regulation and Policy

Competitiveness

Social Welfare

Local and National Network IntegrationLocal and National Network IntegrationLocal and National Network Integration Global Network ConnectionGlobal Network ConnectionGlobal Network Connection

EuropeEurope

CityCity

AsiaAsia

AmericaAmerica

Indonesia International Hub

Port

RuralRural

CityCity

CityCity

AfricaAfrica

Australia &

Oceania

Australia &

Oceania

RuralRural

RuralRural

RuralRural

RuralRural

RuralRural

RuralRural

RuralRural

RuralRural

Inter Island

Inter Inter IslandIsland

Inter Island

Inter Inter IslandIsland

Inter Island

Inter Inter IslandIsland

Phase I (2011-2015)

Goal: lay a strong foundation to establish an effective and efficient National Logistics System in order to achieve the locally integrated vision and create a strong basis for being connected to ASEAN logistics networks

Action: Regulatory

Revision, HR Development and Logistics Infrastructure Improvement in order to create Local and National Logistics Integration

Phase II (2016-2020) Phase III (2021-2025)

Goal: strengthen domestic logistics integration, and synchronization, coordination and integration with ASEAN logistics networks, and lay a strong foundation to be integrated with the global logistic network to achieve the Globally Connected vision

Action: Development and expansion of logistics infrastructure, capacity building for actors and providers of logistics services to make the national logistics system connected to the ASEAN logistics network

Goal: operate effective and efficient national logistics system connected to the Global logistics network

Action: Strengthening of the National Logistics System to be connected to the Global Logistics network

•National Logistics Costs of the 2015 GDP declines by 3% from that of 2011•Indonesian LPI Score is 3.1

•National Logistics Costs of the 2020 GDP declines by 4% from that of 2015•Indonesian LPI Score is 3.3

•National Logistics Costs of the 2025 GDP declines by 5% from that of 2020•Indonesian LPI Score is 3.5 9

v International Hub Port : Kuala Tanjung - in West region; Bitung – in East Regionv Short Sea Shipping is as the backbone of National Freight Transportation Systemv Distribution Center:

ü Each regency/city/province will have one Distribution Center. ü Each Economy Corridor will have at least one National Distribution Center.ü Distribution Center will be designated as buffer stock.

*SLoC: Sea Lane of Communication; ALKI: Indonesian Archipelagic Sea Lane)

v International Hub Port : Kuala Tanjung - in West region; Bitung – in East Regionv Short Sea Shipping is as the backbone of National Freight Transportation Systemv Distribution Center:

ü Each regency/city/province will have one Distribution Center. ü Each Economy Corridor will have at least one National Distribution Center.ü Distribution Center will be designated as buffer stock.

*SLoC: Sea Lane of Communication; ALKI: Indonesian Archipelagic Sea Lane)

Pusat Distribusi Provinsi

Pusat Distribusi Nasional

Legend:

By sea / by rail By land / by rail / by seaBy sea / by rail / by land

Konektivitas:

Short Sea ShippingProvincial Distribution Center

National Distribution Center

C. Chalenges :FC. Chalenges :From Action Plan to Implementationrom Action Plan to Implementation (1) (1) International Hub Port, International Hub Port, Distribution NetworkDistribution Network, and Short Sea Shipping, and Short Sea Shipping

1.CONTAINERS PROJECTION IN MALACA STRAIT

a. SINGAPURE : 28,4 MILLION TEUsb.PELEPAS : 6,5 MILLION TEUsc. PORT KLANG : 8,8 MILLION TEUsd.PENANG: 1,1 MILLION TEUse. BELAWAN : 0,8 MILLION TEUsf. BATAM : 0,25 MILLION TEUs

TOTAL : 45,85 MILLION TEUs

2.MALACA STRAIT IS AS THE REGULER SEA LINE FOR MAIN LINE OPERATORS

3.KUALA TANJUNG IS (NATURAL) SEAPORT, WITH:

• DEPTH :16 MLWs;

• CAPACITY ± 20 MILLION TEUs/YEAR

Port Klang

Penang

Port of Belawan

Singapore

Port of Kuala Tanjung

Port of Tg Pelepas

C.C.ChallengesChallenges:: from Action Plan to Implementation from Action Plan to Implementation (2): (2): Development of Kuala Tanjung as International Hub PortDevelopment of Kuala Tanjung as International Hub Port

CUSDEC C/O Rcmd OtherDocs

P/O L/C D/OB/L

OtherLSP

QuarantineOtherGov’t

Agencies

ShippingLInes

ExporterImporter

ForwarderMinistry

TradeCustoms

NIL

ITS

MES

SAG

ING

HU

B

INTERNATIONALGATEWAY

NATIONALGATEWAY

INTER ISLANDINTRA ISLAND

Inte

rnat

ion

al

Trad

eD

om

esti

c Tr

ade

National Single Window (G2G and B2G) Customs Advanced Trade System eTradeLogistics (B2B)

National Integrated Trade, Logistics and Intermodal Transport Messaging Hub System(Secured and Assured Messages Delivery System)

ASEAN SINGLE WINDOW GLOBAL NETWORK

An integrated services on data/information and documents for both domestic and international trade, interconnected to ASEAN and Global Networks

C.C.Challenges from Action Plan toChallenges from Action Plan to ImplementationImplementation (2) : (2) : ICT Infrastructure ICT Infrastructure

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National e‐Logistics Operating System Scheme

C.C.Challenges from Action Plan toChallenges from Action Plan to ImplementationImplementation (3) : (3) : ICT Infrastructure ICT Infrastructure

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C. C. ChallengesChallenges:: from Action Plan to Implementationfrom Action Plan to Implementation (3):(3):

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INSW Integrated GA System INSW Integrated GA System InteroperabilityInteroperabilityList of List of IIssuing ssuing IImport mport LLicense icense GAGA

No Government AgenciesImp-

Exp.Licensing

Recommendation

1 Ministry of Trade ü

2 Fishery Quarantine ü

3 Animal Quarantine * ü

4 Plantation (Quarantine * ü

5 Food & Drugs Control ü

6 Ministry of Industry ü

7 Ministry of Energy ü ü

8 Nuclear Control NA ü ü

9 Ministry of Forestry ü

10 DG of Post & Teleco ü

11 Ministry of Agriculture ü ü

12 Ministry of Health ü

13 National Police ü

14 Ministry of Environment ü ü

15 Ministry of Deffense ü

16 Ministry of Transport. ü

17 Central Bank (BI) ü

18 Customs (DGCE) -- --

http://www.insw.go.id

Two Pilars Policy: TradeTwo Pilars Policy: Trade--System & PortSystem & Port--SystemSystem§ Trade-System (“TradeNet”) :

Aims to improve and speed up services in export-import documents clearance (Flow of Document)

§ Port-System (“PortNet”) :Aims to support the acceleration of cargo handling in export-import goods traffic (Flow of Goods)

q Trade-System, as one of main pillars in NSW System will exchange data through NSW Portal:

qfrom Customs System :realization of Data import/Exportqfrom Trade System (GA) :licensing export Import

q Port-System,as one of main pillars in NSW System will exchange data through NSW Portal:

qFromCustoms System : § Cargo Manifest (inward/outward)§ Release Approval (SPPB/PE)

qFromPort System (GA) :§ Discharge List/Loading List§ Gate in/Gate out List

-import/Export Licensing-import/Export Regulation- Trade Information

- Info Manifest- Utilization Rep- License Reconc.

-import/ Export Declaration- In/Outward Cargo Manifest-import/Export Approval

- Sea/ Air-Port Permit- Goods/Ships Handling- Loading/Disch.Goods- In/Out Goods

-Info Vessel-Info CY/ WH-Cont.Tracking

- Info Manifest/RKSP- Loading/Disch.List - In/Out Reconciliation

NSW Component System

INSWINSWPortalPortal

http://www.insw.go.id

I-Cares (Integrated Cargo Clearance System)

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• First INSW – Post Customs Clearance• Integrated Cargo Release Initiatives (I-Cares),

Launched in November 14, 2012, under B2B initiatives,• Involving:Ø Terminal Operator : Koja Container TerminalØ Consignee : Toyota Motor Manufacture Indonesia

(TMMIN)Ø Bank : CIMB NiagaØ Trucker : 5 Truckers CompanyØ Shipping lines

• Name of System : CargoLink, http://www.cargolink.co.id

Electronic Cargo Release System (b2b concept)

System integrator&interface

Sistem Pelayanan Barang/ KontainerSistem Pelayanan Kapal

Port-SystemInaPortNetInaPortNet

Inter-connection TPS Online, Ina/Air-PortNet, i-CaRe SystemWith Indonesia-NSW Portal

ii--CaRe System CaRe System àà

TPS OnlineK/L (Instansi)

Vessel services system Cargo/Containers services system

Integrator & Interface system

Many Many ThankThanks!s!

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